“Gluten-free” seems to be everywhere. You may not know what “gluten-free” means, but chances are you haven’t missed the growing number of restaurants, grocery stores, and food brands that are offering menu items or food products that are “gluten-free.” And if you are a restaurant owner or are planning to open a restaurant, it is… Continue Reading
Tag Archives: Restaurant law
What’s The Best Way To Pass On A Restaurant At Death?
Posted in Asset Protection, Corporate Entity, Estate Planning, Real EstateMost restaurant owners want to provide for their families when they die and protect their assets from liability. However, there are issues if the owner just conveys the real estate in a Will. To avoid these issues, restaurant owners should instead consider passing down interests in their companies and placing each piece of underlying real… Continue Reading
Restaurant Non-Competes: Are They Worth It?
Posted in Contracts, Employees & Waitstaff, Employment, Liability, Litigation, Recent Law TrendsA funny thing happened recently. When Lauren Drewes Daniels at The Dallas Observer featured TexasRestaurantLaw.com last week at this link, a controversy ensued between folks that commented on the article. The dispute involved whether non-competes were valid and enforceable in Texas. Apparently, it is a common myth that non-compete agreements are not enforceable in Texas,… Continue Reading
Is Franchising The Only Key To Restaurant Success?
Posted in Contracts, Franchises, Franchising, Legislation, Liability, Litigation, NegotiationWe talk a lot here about franchising and for good reason. After all, many restaurant owners make great money by developing or buying into a great franchise concept. However, some restaurant owners take a different approach: they develop their own brand and remain the key figure in each additional restaurant. Stephen Pyles is one such… Continue Reading
The Top 5 Considerations Before Buying A Restaurant
Posted in Acquisitions, Commentary, Franchises, Franchising, Liability, NegotiationDespite the “Great Recession”, the restaurant industry continues to thrive. One of the latest great examples of this is the expansion of Asian cuisine. For instance, a new franchise concept called Mama Fu’s is set to open 14 new restaurants in the Dallas area alone over the next several years, according to this article from… Continue Reading
5 Top Strategies For Protecting Your Restaurant And Personal Assets
Posted in Contracts, Corporate Entity, Liability, LitigationHow safe are the assets in your restaurants? Are you personally liable for your restaurant’s liabilities? These are two of the most common questions we get from our restaurant owner clients, so we thought we would share five of the top strategies we use to shield our restaurant owners from liabilities at their restaurants, which… Continue Reading
Is Your Restaurant Recipe Safe?
Posted in Acquisitions, Contracts, Franchises, Franchising, Intellectual Property, Liability, LitigationDid you know that KFC uses two different companies to blend the herbs and spices that make up its secret recipe? One company blends part of the spices, the other blends the remaining spices, and a computerized processor mixes them together so that neither company knows the full recipe. Like the Colonel, you may have… Continue Reading
A Fight Broke Out At My Restaurant – Am I Liable?
Posted in Liability, Litigation, Real Estate, Recent Law TrendsWhether a restaurant or its owner is liable for restaurant fights depends. “Depends on what?” you ask. Let me tell you by asking and then answering the following questions: What Did The Police Say? No one can escape personal liability for their own, direct actions. No amount of insurance, legal maneuvering, or other actions will… Continue Reading
Restaurant Trade Fixtures And Equipment – What Belongs To You And What Belongs To The Landlord?
Posted in Acquisitions, Contracts, Liability, Litigation, Real EstateCo-Authored by Matt Sanderson & Lindsey Postula THE MYSTERIOUS TRADE FIXTURE What are trade fixtures? Trade fixtures are the equipment that a tenant uses to operate its business. Although they are not considered to be real property (which means they don’t fall into the definition of fixtures), they are generally attached to the leased premises… Continue Reading
What To Know About Texas Alcohol Permits: An Industry Perspective
Posted in Alcohol, Commentary, Competition, Legislation, Liability, Negotiation, News, VendorsObtaining and dealing with alcoholic beverage permits requires a lot of time and effort, and it can be full of legal pitfalls as well. Sometimes you need a lawyer, but often an outside alcohol permit company can be more cost effective. As one example, we recently interviewed Nancy Scott, with Joe LaBarba Permit Service in… Continue Reading
Help: The City Wants To Shut Down My Restaurant!
Posted in Alcohol, Liability, Litigation, NegotiationThe unthinkable has happened – your restaurant, your baby, is being threatened by the “man”, and it’s up to you to save the day. Don’t worry – help is on the way! How Did This Happen? Let’s first discuss why this may have happened. Most cases of restaurant closure fall into the following categories: (1)… Continue Reading
How To Finance Your Restaurant Purchase
Posted in Acquisitions, Contracts, Franchises, FranchisingThe recent economic struggles have given rise to a host of financing opportunities, and you should consider them all when buying your restaurant. Traditional Financing It’s no surprise that you can go to a bank to finance a restaurant purchase, but which bank and what are your options? These are hard questions. Traditional financing is… Continue Reading
Which Restaurant Franchise Is Right: Fast Food, Fine Dining, or Somewhere In Between?
Posted in Acquisitions, Competition, Contracts, Franchises, Franchising, LiabilityWe’ve talked a lot about franchises in prior posts. Assuming you have decided that a franchise is in your future, how do you know which type is right for you? This question comes to us quite a bit, so here are some thoughts to consider in each of the common types of franchises: Fast Food… Continue Reading
To Partner Or Not To Partner: Top Things To Consider Before Bringing On A Restaurant Partner
Posted in Acquisitions, Corporate Entity, Franchising, Litigation, Recent Law TrendsMany of my clients think that partners and shared ownership are great. They are right, to a point, but there are often times that partners are more a pain than a benefit. With that in mind, I thought I’d share some of the benefits and drawbacks of partnering your restaurant business. Benefits of A Restaurant… Continue Reading
Are Texas Restaurants Required To Serve Free Water?
Posted in Alcohol, Competition, Franchises, Legislation, Litigation, Recent Law TrendsOne of our dedicated blog followers recently asked whether Texas restaurants are required to serve water without charge. I had heard for years that this was a law, but since I did not already know the answer, I looked into this further. The results were surprising. It seems that at least at the state level,… Continue Reading
5 Ways to Avoid Costs of Acquiring Restaurants
Posted in Acquisitions, Contracts, Corporate Entity, Franchises, Negotiation, Real Estate, VendorsAll too often the margins of restaurant acquisition require stringent cost control. To help, here are five things to keep those costs low when considering the purchase of a restaurant: 1. Assemble Your Team – It’s hard to decide when to get your team of counselors (like attorneys, accountants, appraisers) involved in a deal. If… Continue Reading
Put More Money in Your Pocket: Perform a Lease Audit
Posted in Contracts, Franchises, Litigation, Negotiation, News, Real EstateDid you know that you have a 90% chance of overpaying operating costs (CAM, Taxes and Insurance) under your lease, if you fail to check the calculation for accuracy. This comes from the December 2009 edition of Commercial Tenant’s Lease Insider. Many landlords do not take the time to reflect tenant-specific exclusions, caps, etc…. Continue Reading
Partnership Mistakes and How to Avoid Them
Posted in Acquisitions, Competition, Contracts, Corporate Entity, Franchises, Intellectual Property, Litigation, Real Estate, VendorsNearly anyone who has been in business either knows of or at least has heard of the pitfalls of partnerships. However, a lot of people don’t know that you can be partners with someone and not even know it. You might say, “Funny lawyer. Who cares?” But you should care, and here’s why. Partnerships make… Continue Reading
Is Your Restaurant Business Down? 5 Things That May Help
Posted in Commentary, Competition, Franchises, Litigation, Negotiation, Real Estate, VendorsIn our last post, we wrote about 5 Things Not To Do when your restaurant business is down. This week, we’re talking about 5 Things That May Help in the event that you have more people to pay than funds to pay with. Therefore, take it from some restaurant lawyers that have seen many mistakes,… Continue Reading
Is Your Restaurant Business Down? 5 Things Not To Do
Posted in Contracts, Corporate Entity, Employment, Franchises, Litigation, Negotiation, Real Estate, Recent Law Trends, VendorsIt’s no secret that many restaurants are suffering from the current recession, which is hopefully going to end soon. As a result, many restaurant owners are faced with the dilemma of “who to pay” when there’s not enough funds to pay everyone. In situations like these, it’s easy to make a misstep. With that in… Continue Reading
5 Things Your Restaurant Insurance Won’t Protect You From
Posted in Contracts, Corporate Entity, Franchises, Litigation, Negotiation, VendorsWe all know that insurance is the best protection from most forms of liability in a restaurant. However, there are a variety of things that insurance doesn’t protect against. Here are five things often omitted from insurance coverage, and some solutions to this issue. 1. Creditors In General – Creditors come in a variety of… Continue Reading
New York To Ban Salt In Restaurants – REALLY?!?!
Posted in Commentary, Legislation, News, Recent Law TrendsI try to avoid ranting, at least in public, but I’m going to give in to my inner four-year-old for a moment for the benefit of your entertainment. A recent article on LoweringTheBar.com found at this link provides details of an actual bill in New York to ban the use of salt in restaurants. Really!?… Continue Reading
Ten Keys to Negotiating Your Restaurant Lease
Posted in Acquisitions, Contracts, Negotiation, Real EstateFor the most part, restaurant owners lease their property, at least when starting out and often permanently. As such, negotiating a lease can be a stressful experience. To reduce some of that stress, we’ve put together the following Ten Keys To Negotiating Your Restaurant Lease. PRIMARY CONCERNS 1. Net vs. Gross Lease. Every lease is… Continue Reading
How To Turn Your Competitors Into Assets
Posted in Acquisitions, Commentary, Competition, Corporate Entity, Franchises, Negotiation, VendorsThe start of a new year often reminds us to try new things. I suggest that this year you try turning your competitors into assets. There are a variety of ways to do this, but this post will show one unique and forgotten strategy of achieving this goal. If You Can’t Beat’em, Join ‘Em Believe… Continue Reading